The International Monetary Fund (IMF) has said that Nigeria’s economy is still facing a lot of uncertainty, even though the country has made some important reforms.
After meeting with top Nigerian officials for their 2025 Article IV Consultations, the IMF team, led by Axel Schimmelpfennig, praised Nigeria for trying to fix its economy. They said Nigeria is now better prepared to handle global challenges.
Some of the key reforms include stopping the central bank from funding the government budget, removing costly fuel subsidies, and improving how foreign exchange is managed.
However, the IMF also pointed out that many Nigerians are still not feeling the benefits. Poverty and food insecurity are still high, and the economy is affected by lower oil prices and global financial risks.
The IMF suggested that Nigeria should focus on making its economy stronger by:
- Reducing inflation
- Supporting growth led by the private sector
- Protecting important spending, especially on things that help the economy grow
- Using savings from fuel subsidy removal to help poor families through cash transfer programs
They also recommended that Nigeria continue with tight monetary policies to fight inflation and communicate a clear plan to lower inflation over time.
The IMF team met with key people in the government, central bank, agriculture, environment, private sector, and civil society. They all discussed how to move the economy forward despite the current challenges.